07:28AMBest Buy shares sink after weak guidance ( BBY ) by Tonya Garcia
Best Buy Co. Inc. (BBY) shares dropped 6.1% in Tuesday premarket trading, after the electronics retailer said it sees second-quarter earnings below consensus. The company reported first-quarter net income of $229 million, or 70 cents per share, up from $129 million, or 36 cents per share, for the same period last year. Adjusted earnings per share were 44 cents, exceeding the FactSet consensus of 35 cents. Revenue totaled $8.44 billion, down from $8.56 billion last year but exceeding the FactSet consensus of $8.29 billion. Domestic same-store sales were flat, above the guidance of a 1% to 2% decline, driven by year-over-year sales growth in health and wearables, home theater and appliances. The growth was offset by softness in mobile phones and tablets, said Chief Executive Hubert Joly in a statement. Best Buy sees second-quarter revenue between $8.35 billion and $8.45 billion, above the $8.31 billion FactSet consensus, and second-quarter adjusted EPS between 38 cents and 42 cents, below the 50 cents per share FactSet consensus. The company reaffirmed its previous full-year outlook for approximately flat revenue because the first quarter only represents 15% of full-year earnings "and at this stage we have no new material information as it relates to product launches throughout the year," said Joly. Best Buy shares are up 8.4% for the year so far, but down 3.9% for the past year. The S&P 500 is up 0.2% for the year to date.
07:14AMAutoZone misses sales expectations, citing weather ( AZO ) by Tomi Kilgore
AutoZone Inc.'s stock (AZO) was indicated down about 3% in premarket trade Tuesday, after the automotive replacement parts retailer missed third-quarter sales expectations, citing bad weather. For the quarter ended May 7, earnings rose to $327.5 million, or $10.77 a share, from $309.1 million, or $9.57 a share, in the same period a year ago. The results included a 11-cents-per-share legal charge. The FactSet EPS consensus was $10.92. Sales rose to $2.59 billion from $2.49 billion a year ago, but was below the FactSet consensus of $2.65 billion. Same-store sales increased 2%, after rising 2.3% in the same period a year ago. "Regarding the third quarter's results, sales were below our expectations as weather negatively impacted sales primarily in Midwestern, Middle Atlantic, and Northeastern states," said Chief Executive Bill Rhodes. The stock has slumped 4.6% over the past three months through Monday, while the S&P 500 has gained 6.1%. |
